Most financial advisers I have talked to advised against paying off loans too quickly. The idea is that by paying off the loan too quick the company who loaned you the money doesnt make as much back from missing interest so it can negatively effect your score. Bank people make your credit score.... Same reason they say to keep a small ammount ($100 or so) on your credit cards so you dont gain much interest, but it still looks good that you make payments. Making larger than minimum payments is good as it shows you are not financially irresponsible. Having cash on hand is nice, but without credit you may not be able to buy things in the future that you dont have the cash for (house, emergency situations, ect.)